Selected Transactions for Sweet Home, a Property Management Company, in Its

question 72

Essay

Selected transactions for Sweet Home, a property management company, in its first month of business, are as follows.
Jan. 2 Issued ordinary shares to investors for $15,000 cash.
3 Purchased used car for $4,000 cash for use in business.
9 Purchased supplies on account for $500.
11 Billed customers $1,800 for services performed.
16 Paid $200 cash for advertising.
20 Received $700 cash from customers billed on January 11.
23 Paid creditor $300 cash on balance owed.
28 Paid dividends of $2,000.
Instructions
For each transaction indicate the following.
(a) The basic type of account debited and credited (asset (A), liability (L), equity (E)).
(b) The specific account debited and credited (cash, rent expense, service revenue, etc.).
(c) Whether the specific account is increased (incr.) or decreased (decr).
(d) The normal balance of the specific account.
Use the following format, in which the January 2 transaction is given as an example.

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Definitions:

Revenue Journal

An accounting ledger that records all transactions involving the income earned by the business, specifically from its operations and activities.

Provided on Account

A transaction that occurs when goods or services are delivered with the understanding that payment will be made at a later date.

Creditor Balances

The amounts owed by a business to its creditors, representing liabilities for goods, services, or loans provided to the business.

Cash Payments Journal

An accounting ledger that tracks all cash outflows or payments made by a business.